COMMISSIONER OF INCOME TAX Vs. V C KUGANATHAN

JUDGEMENT

(1.) THE present appeals are filed under Section 260A of the Income Tax Act, 1961 by the Revenue against the orders passed by the Income Tax Appellate Tribunal, Madras. THE issue involved is common for all the tax cases and hence the counsel appearing for both the sides requested the Court to take up all the above matters together. Accordingly, all the matters are taken up together and the same are disposed of, by a common judgment.

(2.) THE questions of law raised in the above appeals are as under: a) Tax Case (A) Nos.224 to 226 of 2003, 1093 of 2004, 1293 to 1299 of 2005, 1175 of 2005: "Whether in the facts and circumstances of the case, the Tribunal was right in treating the transfer of the right to exhibit the films, as a sale of goods or merchandise for the purpose of deduction under Section 80HHC?" b) Tax Case (A) No.295 of 2005: "Whether on the facts and circumstances of the case the Appellate Tribunal was right in law in holding that, the right of exploitation of the films outside India do constitute export of goods or merchandise and consequently the assessee would be entitled to deduction under Section 80HHC of the Income-tax Act is valid?" c) Tax Case (A) No.548 and 549 of 2005: "1. Whether on the facts and in the circumstances of the case, the Income Tax Tribunal is right in law in holding that the assessee was entitled to relief under Section 80HHC since in the case of lease of film rights for exhibition in foreign countries would tantamount to export of goods and merchandise? 2. Whether on the facts and in the circumstances of the case, the Income Tax Tribunal is right in law in holding that the assessee was entitled to relief under 80HHC especially what was transferred was only a right to exploit the films and there was no goods merchandised or exported?

(3.) UNDER these circumstances, we are of the view that the assessee had satisfied the conditions contemplated under Section 80HHC of the Act and hence the assessee is entitled for the deduction under Section 80HHC of the Act.